AIC 300 - Simulated Exam|COMPLETE STUDY GUIDE WITH HIGH YIELD QUESTIONS AND 100% CORRECT ANSWERS|ALREADY GRADED A|LATEST VERSION 2025

Insurers and claim representatives must keep the promises specified in insurance policies, as well as those created by the law. In insurance transactions, the insured pays a premium for the insurer's promise to - CORRECT ANSWERS️️Handle claims in good faith. Maja handled a large liability claim that settled above the policy limits. The insured is now charging the claim was handled in bad faith. During their investigation of the bad-faith claim, Maja and defense counsel discovered that the claimant had received the payment from the insurer, but not the amount above the policy limits that was to come from the insured's assets. Which one of the following defenses would Maja's defense most likely invoke? - CORRECT ANSWERS️️Insured's collusion with the claimant. Bettina's apartment is burglarized and several items are stolen. In filing her claim, she tells her insurer that her stolen television was both newer and larger than it actually was. This constitutes which one of the following types of fraud? - CORRECT ANSWERS️️Soft Fraud. In liability claims, the claims rep will require an authorization from the injured party to - CORRECT ANSWERS️️Obtain medical records. Antonia has a general liability policy with a self-insured retention of $50,000. The policy has an occurrence limit of $250,000 and an aggregate limit of $500,000. She had submitted one prior claim this policy term for which $100,000 was paid by the insurer. How much will Antonia's insurer pay on a subsequent claim under the same policy period that is valued at $400,000? - CORRECT ANSWERS️️$250,000 Claims rep Miguel is conducting a settlement with a claimant. He constructs his first offer so that the claimant will likely find it undesirable. This becomes the basis of comparison for the second offer that he makes. Miguel understands that people - CORRECT ANSWERS️️Feel empowered when given a choice. Joy Insurance Company is interested in using data mining to solve a problem it is having with claims fraud in one of its product lines. The first step it should take is - CORRECT ANSWERS️️To understand what it wants to achieve. Thomas is an attorney who is defending an insurer in a litigated case. He has located documents that show the insured was aware of the issue that cause the injury to the claimant before the accident. Thomas is concerned that this evidence will hurt his case. He should - CORRECT ANSWERS️️Preserve the evidence as part of the record. As a part of the first contact with an insured on a property damage claim, a claims representative may provide a blank - CORRECT ANSWERS️️Proof of loss form. Ciara is going to college with the goal of working as a data scientist for an insurer. She will need a strong foundation in mathematics and statistics, computer programming, domain knowledge, and data science. Which one of Ciara's skills will require her to understand the insurance profession to which the data is being applied? - CORRECT ANSWERS️️Domain knowledge. Rodrigo manages a claims department for an insurer and uses loss ratio as a measure of the department's performance. Rodrigo calculates loss ratio as - CORRECT ANSWERS️️Losses and LAE divided by earned premium. An insurer that finds it economically impractical to establish a claims office in a given state is likely to use which one of the following to perform the claims handling function? - CORRECT ANSWERS️️Independent Adjusters